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8-Week Maturity Debt Instrument Provides BoG With GHS 1.63 Billion
The Bank of Ghana (BoG) successfully raised over GHS 1.63 billion last week through the auction of the 56-day Central Bank bills, issued at an interest rate of 26.99%, in line with the central bank’s prevailing policy rate.
The auction, held on December 18, 2024, forms part of the central bank’s dual mandate to support government financing and manage liquidity in the financial system.
Central Bank bills, typically deployed as a monetary policy tool, play a critical role in open market operations (OMO).
By issuing short-term securities, the BoG seeks to regulate money supply, control liquidity, and stabilize the broader economy.
The proceeds from this issuance are earmarked to fulfill two key objectives:
- Government Support: The funds will provide short-term financing for the central government, addressing immediate fiscal needs.
- Liquidity Management: The securities offer the BoG a mechanism to manage liquidity within the banking system, ensuring monetary policy objectives are met.
The auction highlights the BoG’s strategic use of Central Bank bills to maintain monetary stability while meeting the financing requirements of the government.
By leveraging such instruments, the central bank continues to play a pivotal role in safeguarding economic stability and fostering confidence in Ghana’s financial markets.
